Avalon Technologies stock drops over 5% on reports of promoter stake sale; firm issues clarification

Electrical equipment manufacturer Avalon Technologies shares declined more than 5% on Wednesday, September 30, as investors focused on reports of the company's promoters selling their stake via a block deal transaction during the morning window.

In response to the stock exchanges, Avalon Tech issued an official clarification on Sept. 30, after noting the media reports, which claimed that Bhaskar Srinivasan and his promoter group, comprising BBS Family Trust and KBS Family Trust, sold some stake in the company.

NSE data showed that Avalon Technologies shares dropped 5.2% to touch an intraday low of ₹2,180 apiece on Wednesday’s market, in comparison to ₹2,302 apiece at the previous equity market close.

Trading volumes surpassed 6 million equity shares across NSE and BSE combined during the market session on September 30, triggering the high-volume gains on Wednesday’s market after the reported block deal.

After touching the day’s low level, the company’s stock recovered some of its intraday losses but was trading 1.4% lower at ₹2,268.60 apiece as of the mid-day hours.

A report from the news portal CNBC-TV18, citing people aware of the development, said that Bhaskar Srinivasan, BBS Family Trust and KBS Family Trust are likely to sell up to a 6% stake or up to 40.5 lakh equity shares via a block deal transaction valued at around ₹861.9 crore.

The report also mentioned that the equity shares were exchanged at an average price of ₹2,181 apiece. However, the official buyer and seller have not yet been verified as of the trading session on Wednesday.

Avalon Technologies issues clarification

Noting the reports on the promoter stake sale, Avalon Technologies clarified that KBS Family Trust should not be interpreted as Kunhamed Bicha or his promoter group.

The company also said that the Chairman and Managing Director, Kunhamed Bicha, and his promoter group entities are not selling any stake through the reported deals under review.

“The company wishes to clarify that the reference to ‘KBS Family Trust’ should not be construed as a reference to Kunhamed Bicha or his promoter group. Kunhamed Bicha and his promoter group are not selling any shares in connection with this proposed stake sale,” Avalon Tech said in its official statement.

The company also said that it remains committed to maintaining transparency and providing accurate information to its shareholders and stakeholders.

Conservative outlook ahead?

In the Q1 earnings call, Avalon Tech’s management said that they prefer being conservative rather than going all out with flying numbers and then chasing the same.

Timing risk on program ramps, supply chain disruption, and tariffs impacting the company's margins remained the key headwinds for the company, resulting in a conservative outlook as the firm now looks towards diversified growth across verticals to reduce dependence.

Despite the long-cycle nature of the business, the management is now focused on the market opportunities, exploring types of products and geographies in an effort to fuel growth.

Avalon Tech share performance

NSE data showed that Avalon Technologies shares have delivered more than 300% returns to investors in the last three years, and over 122% gains in the last one year period. The stock surged 154% on a year-to-date basis (YTD) basis in 2026.

However, the company’s stock has lost 5.2% in one month and has declined 8% in the last five market sessions, the exchange data showed.

Shares of Avalon Technologies surged to its 52-week high of ₹2,618 apiece on September 18, 2026, while the 52-week low was at ₹777.30 apiece on January 29, 2026.

The company’s market capitalisation (m-cap) was at ₹15,413.69 crore as of the trading session on Wednesday, September 30, 2026.